Bourbon Continues Stacking Vessels as Weak Market Stings

Bourbon has posted lower adjusted revenues for the quarter ended December 31, 2016 as utilization and daily rates continue to decline.

The company said it had stacked 104 vessels as of end-December last year, with 27 vessels stacked during the 4th quarter in the deepwater offshore segment, and up to 73 vessels in shallow water offshore.

“Adjusted revenues continued to be affected by the challenging market conditions and by the decrease in demand in both Deepwater and Shallow water offshore. This was amplified by the over-capacity of vessels in both of these segments, thereby pulling daily rates downwards,” the company said.

French vessel owner and offshore services provider generated a total of €244.4 million in fourth-quarter 2016 adjusted revenues. This result is approximately 28% lower from €334 million in Q4 2015.

Bourbon had €1.1 billion in adjusted revenues for the year 2016, down some 23% a year ago (€1.4 billion).

The company’s subsea segment brought in Q4 2016 adjusted revenues of €56.4 million, up close to 6% year-over-year and also up against the Q3 2016. Subsea division generated €217.2 million in 2016 compared to €252.3 million in 2015.

“We expect to see continued progress in utilization rates in the subsea and crew boats segments. However, the deepwater and shallow water offshore segments will continue to experience the
effects of the low point of the cycle in the first quarters of 2017,” Bourbon added.

In the fourth quarter of 2016, Bourbon saw its average utilization rate (excluding crew boats) at 52.1%, against 76.7% same time last year. Average daily rates also declined from $16,809 to $15,081 year-over-year. Sequentially, rates also fell from $15,260.

Subsea World News Staff